Moscow, 29 October 2015. — PJSC Aeroflot (Moscow Exchange ticker: AFLT) announces the results of a Board of Directors meeting held today, 29 October 2015 and chaired by Kirill Androsov.
The Board addressed the following agenda items:
Implementation of Aeroflot Group’s strategy. As per the result of an audit, Aeroflot Group’s Long-term Development Programme (LDP) and other strategic initiatives are being successfully carried out. The recommendations of the auditor are being implemented as part of the Group’s ongoing strategic management practices and LDP for 2015-2020. The Board deemed it appropriate to complete final implementation of the Group LDP following examination by the Government Commission on Transportation.
Investor relations. Despite high volatility on the Russian equity market, PJSC Aeroflot’s share price rose 9.3% in the first nine months of 2015. Key factors in the share price performance included strong Aeroflot Group operating results (particularly in the context of weak results by peers and the market generally), quantifiable strengthening of Group market share and Aeroflot’s financial results through the first six months of 2015, which were above consensus forecasts and well-received by the investment community. The situation surrounding Transaero has also had a significant impact on share price performance. The results of work with investors and analysts for 9m 2015 were presented. In the fourth quarter the Company plans to continue active engagement with the investment community, with a focus on promoting positive aspects of Aeroflot Group’s investment story as well as how changes in the industry are affecting the Group.
Aeroflot Group’s marketing strategy. The Group marketing strategy for 2015-2020 has proved to be effective. Active advertising and partnership campaigns are underway across key markets. One of the most successful marketing initiatives is Aeroflot’s partnership with Manchester United F.C., which over the last two years has delivered significant business results given the opportunity for the Company to use the brand of one of the world’s most successful football clubs. The Company widely employs the latest technologies for garnering feedback from passengers, new IT solutions and Internet technologies including online sales, which increased 36% year-over-year in 1H 2015. Aeroflot actively engages via a wide range of social media networks. The decision was taken to implement the 2015-2020 marketing strategy given the Group’s revised multi-brand Group structure.
Incentive scheme at PJSC Aeroflot. In this connection the following were approved:
• A list of KPIs related to implementation of the Company’s LDP in 2016, and KPIs for the CEO of PJSC Aeroflot. The management team was tasked with developing a proposal setting out overall KPIs for PJSC Aeroflot in 2016;
• Parameters and financial conditions for the long-term management incentive programme for 2016-2019 (June). Management was tasked with preparing draft updates to the PJSC Aeroflot options programme.
Aeroflot branches and representative offices. The following decisions were made:
• To open an office of the PJSC Aeroflot branch in Magadan in connection with the start of regular flights to this city, and in order to increase the efficiency of the management of the Company’s offices throughout the Far East Federal District.
• To approve changes to Appendix 1 to the Charter of PJSC Aeroflot with a change to the structure of the branch in Vladivostok: the PJSC Aeroflot branch in Vladivostok, with offices in Khabarovsk, Blagoveshchensk, Yakutsk, Yuzhno-Sakhalinsk, Petropavlovsk-Kamchatskiy, Magadan.
The Board of Directors also decided to create a new company within Aeroflot Group that will be responsible for service and maintenance of Aeroflot Group aircraft.
Dmirty Saprykin, who resigned on 2 October 2015 in connection with his appointment as CEO of Transaero, was also removed from the Management Board of Aeroflot.
Aeroflot Press Service
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Aeroflot is Russia’s flagship carrier and one of the largest airline groups in Europe. In 2014, Aeroflot carried 23.6 million passengers (34.7 million passengers as Aeroflot Group including subsidiaries), a record for any Russian airline. A proud member of the SkyTeam global airline alliance, Aeroflot and its partners serve 1,057 destinations in 179 countries worldwide. Aeroflot operates one of the youngest fleets in the world, numbering 163 Airbus, Boeing and Sukhoi airliners. Aeroflot is among the global leaders in aviation safety. The company’s European Community Safety Assessment of Foreign Aircraft (SAFA) Index, which is the main globally recognized safety parameter, is comparable to global peers. The first Russian carrier to enter the IATA Operational Safety Audit (IOSA) register, renewing its registration for the sixth time in 2015, Aeroflot has successfully passed the IATA Safety Audit for Ground Operations (ISAGO) and is fully ISO 9001:2008, ISO 14001:2004 compliant. In 2015 Aeroflot was named by SKYTRAX as the Best Airline in Eastern Europe for the fourth time. Find more at www.aeroflot.com.